Topic: Will spending Bitcoin actually be bad for the price? - page 2. (Read 661 times)
I think that taking the role of bitcoin solely as a means of saving capital is not entirely true. First of all, because people now actively working with LN. When this work is completed, we can very easily pay all of our purchases directly using Bitcoin. And it will happen in seconds.
when you spend your cash like USD and buy stuff like McDonald's is that bad for USD? so why should it be bad for bitcoin to spend it!!!
as a matter of fact spending bitcoin can only be good for bitcoin as it is increasing the circulation, increases the adoption and helps the bitcoin economy grow. one of the main reasons why many merchants are still reluctant to adopt bitcoin is because people are reluctant to spend their bitcoin. if they do, then these merchants will adopt bitcoin and then more people will adopt bitcoin and the circle continues and all of that helps bitcoin grow more and more.
Well said, and we also need to note the best part in it keep on increasing the market circulation through realtime utilizing which gives more importance similar to fiat and this won't make a big change in the price unless there is massive usage from the common people same as that of the adoption happening from a country or acceptance from a chain of businesses under a single authority. as a matter of fact spending bitcoin can only be good for bitcoin as it is increasing the circulation, increases the adoption and helps the bitcoin economy grow. one of the main reasons why many merchants are still reluctant to adopt bitcoin is because people are reluctant to spend their bitcoin. if they do, then these merchants will adopt bitcoin and then more people will adopt bitcoin and the circle continues and all of that helps bitcoin grow more and more.
when you spend your cash like USD and buy stuff like McDonald's is that bad for USD? so why should it be bad for bitcoin to spend it!!!
as a matter of fact spending bitcoin can only be good for bitcoin as it is increasing the circulation, increases the adoption and helps the bitcoin economy grow. one of the main reasons why many merchants are still reluctant to adopt bitcoin is because people are reluctant to spend their bitcoin. if they do, then these merchants will adopt bitcoin and then more people will adopt bitcoin and the circle continues and all of that helps bitcoin grow more and more.
as a matter of fact spending bitcoin can only be good for bitcoin as it is increasing the circulation, increases the adoption and helps the bitcoin economy grow. one of the main reasons why many merchants are still reluctant to adopt bitcoin is because people are reluctant to spend their bitcoin. if they do, then these merchants will adopt bitcoin and then more people will adopt bitcoin and the circle continues and all of that helps bitcoin grow more and more.
I believe it's not bad for bitcoin in any ways. You are circulating bitcoins in the market, using it as currency, what is one of the biggest criticizes to the virtual currency. So it's less one argument for bitcoin haters, what makes the market more optimistic, consequently there will be more demand for btc.
And once you buy your food, products with btc, the third party service might sell the bitcoins ahead (dumping the currency), but you, as customer will need more bitcoins later to buy more stuff, then you will buy it (increasing demand, pumping the currency).
Spending wisely cannot take down bitcoin price, and what's bad for bitcoin was the bad news circulating around. Every negative thoughts could trigger panic, that's why we're able to notice price declination. Normal spenders just use bitcoin according to it's purpose, like trading and buying coins at trading sites. And once you buy your food, products with btc, the third party service might sell the bitcoins ahead (dumping the currency), but you, as customer will need more bitcoins later to buy more stuff, then you will buy it (increasing demand, pumping the currency).
Well the inevitable things happen and we can not stop someone from spending their own money, but I think a little chip of fraction may not cause the price to go down but if whales would gather and spend or exchange their Cryptocurrency or Bitcoin to fiat then there might be a sudden change with the price of bitcoin but that is not spending but converting Bitcoin or other cryptocurrencies to fiat money, So if a number of people would spend their hold coins maybe something like that could happen, But as I said we can not control any of it. And maybe a cycle of spending and saving can occur so it will produce a cycle of continues profit, I can not say about if it might happen but I guess it will surely depend on a given occasion.
I don't think that spending Bitcoin has some substantial influence on price. Besides to my opinion Bitcoin should not only sit idle and serve no concrete purpose. Sooner or later majority of users will either spend Bitcoin or koncert it into fiat and there isn't and also there shouldn't be some mechanism to prevent that.
It depends on what kind of bitcoin user you are . if your a whale that has a tons of bitcoins and you want to spend it a half or a whole of it then it does have a major impact on the market or the whole market of cryptos rather not just on the bitcoins value alone but if your only a small time hodler or an average joe that has a small amount of bitcoins its obvious that you wont make any changes as soon as you sell your coins . i assume that your not a whale so go ahead spend all you want , sky is your limit . just dont regret and cry if you see that bitcoins price is skyrocketing
I believe it's not bad for bitcoin in any ways. You are circulating bitcoins in the market, using it as currency, what is one of the biggest criticizes to the virtual currency. So it's less one argument for bitcoin haters, what makes the market more optimistic, consequently there will be more demand for btc.
And once you buy your food, products with btc, the third party service might sell the bitcoins ahead (dumping the currency), but you, as customer will need more bitcoins later to buy more stuff, then you will buy it (increasing demand, pumping the currency).
And once you buy your food, products with btc, the third party service might sell the bitcoins ahead (dumping the currency), but you, as customer will need more bitcoins later to buy more stuff, then you will buy it (increasing demand, pumping the currency).
This is just one more reason I don't really share sentiments with the so-called permabulls and ultra hodlers or whatever they call themselves. Sure, I hold as much as I can but I'm not hesitant to spend my btc. I earn almost everything in coin.
I personally don't know how it works but logic says it is only with regular spending and use that Bitcoin continues to have its appeal as currency and its value as such grows.
Pizza day coming up too. Isn't that self explanatory?
I personally don't know how it works but logic says it is only with regular spending and use that Bitcoin continues to have its appeal as currency and its value as such grows.
Pizza day coming up too. Isn't that self explanatory?
If you just spend a little then it won't affect the price that much unless if you are part of the whales who will be spending thousands to millions of coins then that would really change the price. It is normal to spend since you are just doing like trading you sold your coins.
Absolutely, spending bitcoin can't affect the outgrow of its price, maybe it is about the market high volatilization which can fluctuate the possible price of bitcoin. I spend my bitcoin which gives huge assurances on giving massive profits in return and always keep determined for every possible conclusion.
I think it depends on where you spend, the important thing for bitcoin is adoption and increasing the hype for it so spending does actually make a lot of sense. However if you spend it on somewhere that will sell it right away then it doesn't really make any sense. For example steam had bitcoin purchase for a while and that was amazing, I don't know what they did with it but if they kept a bit of it then they are bitcoin rich right now for sure, that type of spending is alright.
However, if you want to spend it buying coffee that doesn't really make that much change, its just a cup of coffee here and there and it would literally make no change at all. That is why where you spend your bitcoin changes the bad or good, there is really very little "bad" place to spend unless they literally cash out right away but there is levels of good on spending.
However, if you want to spend it buying coffee that doesn't really make that much change, its just a cup of coffee here and there and it would literally make no change at all. That is why where you spend your bitcoin changes the bad or good, there is really very little "bad" place to spend unless they literally cash out right away but there is levels of good on spending.
Yes, such a method of payment for goods and services would in many respects solve various problems related to cryptocurrency. This is especially true for sellers who find it very difficult to keep records in cryptocurrency and then report to the tax authorities. That is, for sellers of goods and services, these would actually be settlements in ordinary currency, and for buyers, it is important that purchases are made at the rate of crypto-currency at the time of the transaction. Here both sides retain their interests.
Well maybe is complicated to accept it when price goes down, and spending it maybe not affect the price when buy something with but when the shops sell it for money then there can be a drop, but if we will have a higher price i think it can be adopted and accepted because maybe then the price will not have so much fluctuation. And if shops sell it people can buy it again and use again.
if the payment system is as you explained, using a third party, then the third party exchanges it directly to fiat. this is tantamount to selling bitcoin to buy things right? if the user of that payment system (third party) is large it will certainly affect the market? I can't determine this is good or bad for the price, because of course there are positive and negative influences. I think it would be much better if we spend bitcoin directly to the merchant without a third party, it would be good for the price 
Spending would be classified into 2 different things which you do directly spend out your coins into merchants purchasing goods and services
and spending where you do basically making buy and sell or simply trading.It isn't really that bad and come to think that only big holders of btc
would be the only one would mainly affect the entire market.
and spending where you do basically making buy and sell or simply trading.It isn't really that bad and come to think that only big holders of btc
would be the only one would mainly affect the entire market.
Why would it be bad for the price? You are spending your Bitcoin, you are not selling it. So it won't directly affect the price of the bitcoin.
The vast majority of merchants accept BTC through Bitpay or other payment processors in exchange for fiat. Those BTC are generally being dumped on the market.....perhaps OTC rather than spot, but no matter what, this is selling that is absorbing market demand.
If you just spend a little then it won't affect the price that much unless if you are part of the whales who will be spending thousands to millions of coins then that would really change the price. It is normal to spend since you are just doing like trading you sold your coins.
I thought of this a couple days ago. I saw the news that now you can spend Bitcoin at various big retail stores using the Spedn app, which I guess basically just uses a conversion service to let you use Bitcoin and exchange it for dollars and sends the dollars to the retailer. I started thinking that this is likely the standard model that will be followed at most retailers to spend Bitcoin.
Very few retailers can be expected to directly take Bitcoin, because it is volatile and they want exactly the amount of money they charge. They're not in the investment business, they're in the retail business, so when they sell something they don't want the amount of money the receive to go up and down. So given that, any time someone spends bitcoin that goes through such a conversion service, that means it is being sold for fiat (or probably eventually a state issued fiat stable cryptocurrency) on an exchange somewhere. If it becomes normal to spend bitcoin wouldn't that create huge downward pressure on the price?
Could the dream of using bitcoin to pay for things around the world actually be, paradoxically, detrimental to its price, and therefore bad for its adoption?
This makes me think that maybe store of value will be the major use case of bitcoin, rather than both store of value and means of payment. What do you think? Is the scenario I describe where spending makes bitcoin's price go down wrong in some way?
Very few retailers can be expected to directly take Bitcoin, because it is volatile and they want exactly the amount of money they charge. They're not in the investment business, they're in the retail business, so when they sell something they don't want the amount of money the receive to go up and down. So given that, any time someone spends bitcoin that goes through such a conversion service, that means it is being sold for fiat (or probably eventually a state issued fiat stable cryptocurrency) on an exchange somewhere. If it becomes normal to spend bitcoin wouldn't that create huge downward pressure on the price?
Could the dream of using bitcoin to pay for things around the world actually be, paradoxically, detrimental to its price, and therefore bad for its adoption?
This makes me think that maybe store of value will be the major use case of bitcoin, rather than both store of value and means of payment. What do you think? Is the scenario I describe where spending makes bitcoin's price go down wrong in some way?
If people are able to spend bitcoins for buying products then this is a great step towards mass adoption.
Personally, I don't find a good idea to spend my bitcoins for purchasing stuff. I keep hodling them and wait for a bigger adoption to come in the next years. Not to mention that I consider it as a way to store value.
It's neutral when you buy stuff with bitcoin if you already own bitcoin but can affect the market if the store/owner sells it. If you have to buy it first then it will have no effect since you are first pumping the price and then dumping it. The volume however is so low that it will have no effect either way
I have been asking myself this same question: Is spending bitcoin helping it or is holding it making it grow? We have to remember that bitcoin is both a currency and a store of value...and both must be promoted and utilized leading to the dreamed massive adoption by the people. The problem is that because many are thinking that bitcoin will be moving in value they choose to hold rather than spend. Unlike the fiat money which is not very volatile there is no incentive to hold more than what you need...the same thing is quite opposite with bitcoin. So what we should achieve is finding the middle ground. We should be encouraging people to use some of their bitcoin and then use some to hold though admittedly as shown in the market today this can be difficult to achieve.
1. The volume has to be sufficient enough for this effect to change the price - I doubt that many people will be using those apps, at least at the start, so we wouldn't notice it.
2. The fact that big names have adopted Bitcoin can alone boost the price, so it may cancel some portion of the negative price effect.
3. I don't think that whomever handles those coins will be mindlessly dumping them, they'll probably sell some and trade with some. T
2. The fact that big names have adopted Bitcoin can alone boost the price, so it may cancel some portion of the negative price effect.
3. I don't think that whomever handles those coins will be mindlessly dumping them, they'll probably sell some and trade with some. T
Well the inevitable things happen and we can not stop someone from spending their own money, but I think a little chip of fraction may not cause the price to go down but if whales would gather and spend or exchange their Cryptocurrency or Bitcoin to fiat then there might be a sudden change with the price of bitcoin but that is not spending but converting Bitcoin or other cryptocurrencies to fiat money, So if a number of people would spend their hold coins maybe something like that could happen, But as I said we can not control any of it. And maybe a cycle of spending and saving can occur so it will produce a cycle of continues profit, I can not say about if it might happen but I guess it will surely depend on a given occasion.
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